4 ms·

Why is there a problem at $6,500 MRR for a lot of companies?

• JacobAldridge 11y ago
  As a general rule, no scalable solutions. It's essentially a 1-person-company at that level and the owners never take the necessary risks (investing in recruitment, technology, marketing, etc) to grow beyond 1-2 people in a garage. Approximately $80,000 per annum is enough for 1 person to 'comfortably' live on, and if they're doing all the delivery themselves it also probably fills their time; so while there's pressure on them to get to that level, there's usually less urgency to move beyond it. Hence, stuck.
  • bbcbasic 11y ago
    I'd think it depends on a lot of factors e.g. how easy it is to copy the idea, is the start-up just selling their time, the nature of the customers, the motivations of the founder etc. However sounds like a good rule of thumb, and a good question to ask. "Is this the kind of business model that would get stuck at a salary level income".